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1 STATE OF OKLAHOMA
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2 2nd Session of the 60th Legislature (2026)
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3 SENATE BILL 2057 By: Frix
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6 AS INTRODUCED
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7 An Act relating to ad valorem tax; amending 68 O.S.
7 2021, Sections 2802 and 2803, which relate to
8 definitions and classification of property; defining
8 term; expanding classifications of property for
9 purposes of ad valorem taxation; updating statutory
9 language; and providing an effective date.
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12 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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13 SECTION 1. AMENDATORY 68 O.S. 2021, Section 2802, is
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14 amended to read as follows:
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15 Section 2802. As used in Section 2801 et seq. of this title:
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16 1. "Accepted standards for mass appraisal practice" means those
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17 standards for the collection and analysis of information about
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18 taxable properties within a taxing jurisdiction permitting the
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19 accurate estimate of fair cash value for similar properties in the
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20 jurisdiction either without direct observation of such similar
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21 properties or without direct sales price information for such
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22 similar properties using a reliable statistical or other method to
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23 estimate the values of such properties;
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Req. No. 3224 Page 1
1 2. "Additional homestead exemption" means the exemption
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2 provided by Section 2890 of this title;
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3 3. "Assessor" means the county assessor and, unless the context
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4 clearly requires otherwise, deputy assessors and persons employed by
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5 the county assessor in performance of duties imposed by law;
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6 4. "Assess and value" means to establish the fair cash value
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7 and taxable fair cash value of taxable real and personal property
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8 pursuant to requirements of law;
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9 5. "Assessed valuation" or "assessed value" means the
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10 percentage of the fair cash value of personal property, or the
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11 percentage of the taxable fair cash value of real property, pursuant
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12 to the provisions of Sections 8 and 8B of Article X of the Oklahoma
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13 Constitution, either of individual items of personal property,
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14 parcels of real property or the aggregate total of such individual
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15 taxable items or parcels within a jurisdiction;
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16 6. "Assessment percentage" means the percentage applied to
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17 personal property and real property pursuant to Section 8 of Article
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18 X of the Oklahoma Constitution;
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19 7. "Assessment ratio" means the relationship between assessed
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20 value and taxable fair cash value for a county or for use categories
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21 within a county expressed as a percentage determined in the annual
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22 equalization ratio study;
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Req. No. 3224 Page 2
1 8. "Assessment roll" means a computerized or noncomputerized
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2 record required by law to be kept by the county assessor and
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3 containing information about property within a taxing jurisdiction;
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4 9. "Assessment year" means the year beginning January 1 of each
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5 calendar year and ending on December 31 preceding the following
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6 January 1 assessment date;
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7 10. "Business assets" means the nonresidential personal
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8 property of a taxpayer, excluding the personal property of an
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9 agricultural operation, including, but not limited to, implements of
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10 husbandry and attachments, machinery, livestock, and improvements to
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11 agricultural land, boat docks, and airplane hangers;
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12 11. "Circuit breaker" means the form of property tax relief
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13 provided by Sections 2904 through 2911 of this title;
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14 11. 12. "Class of subjects" means a category of property
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15 specifically designated pursuant to provisions of the Oklahoma
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16 Constitution for purposes of ad valorem taxation;
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17 12. 13. "Code" means the Ad Valorem Tax Code, Section 2801 et
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18 seq. of this title;
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19 13. 14. "Coefficient of dispersion" means a statistical measure
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20 of assessment uniformity for a category of property or for all
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21 property within a taxing jurisdiction;
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22 14. 15. "Confidence level" means a statistical procedure for
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23 determining the degree of reliability for use in reporting the
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24 assessment ratio for a taxing jurisdiction;
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Req. No. 3224 Page 3
1 15. 16. "Cost approach" means a method used to establish the
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2 fair cash value of property involving an estimate of current
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3 construction cost of improvements, subtracting accrued depreciation
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4 including any loss in value that may be caused by physical
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5 deterioration, functional obsolescence or economic obsolescence and
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6 adding the value of the land.
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7 a. Physical deterioration is a cause of depreciation that
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8 is a loss in value due to ordinary wear and tear and
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9 the forces of nature.
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10 b. Functional or internal obsolescence is the loss in
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11 value of a property resulting from changes in tastes,
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12 preferences, technical innovations or market
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13 standards.
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14 c. Economic or external obsolescence is a cause of
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15 depreciation that is a loss in value as a result of
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16 impairment in utility and desirability caused by
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17 factors outside the boundaries of the property or loss
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18 of value in a property (relative, relative to the cost
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19 of replacing it with a property of equal utility),
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20 utility that stems from factors external to the
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21 property;
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22 16. 17. "County board of equalization" means the board which,
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23 upon hearing competent evidence, has the authority to correct and
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24 adjust the assessment rolls in its respective county to conform to
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Req. No. 3224 Page 4
1 fair cash value and such other responsibilities as prescribed in
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2 Section 2801 et seq. of this title;
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3 17. 18. "Equalization" means the process for making adjustments
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4 to taxable property values within a county by analyzing the
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5 relationships between assessed values and fair cash values in one or
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6 more use categories within the county or between counties by
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7 analyzing the relationship between assessed value and fair cash
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8 value in each county;
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9 18. 19. "Equalization ratio study" means the analysis of the
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10 relationships between assessed values and fair cash values in the
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11 manner provided by law;
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12 19. 20. "Fair cash value" or "market value" means the value or
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13 price at which a willing buyer would purchase property and a willing
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14 seller would sell property if both parties are knowledgeable about
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15 the property and its uses and if neither party is under any undue
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16 pressure to buy or sell and for real property shall mean the value
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17 for the highest and best use for which such property was actually
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18 used, or was previously classified for use, during the calendar year
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19 next preceding the applicable January 1 assessment date;
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20 20. 21. "Homestead exemption" means the reduction in the
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21 taxable value of a homestead as authorized by law;
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22 21. 22. "Income and expense approach" means a method to
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23 estimate fair cash value of a property by determining the present
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24 value of the projected income stream;
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1 22. 23. "List and assess" means the process by which taxable
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2 property is discovered, its description recorded for purposes of ad
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3 valorem taxation and its fair cash value and taxable fair cash value
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4 are established;
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5 23. 24. "Mill" or "millage" means the rate of tax imposed upon
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6 taxable value. One (1) mill equals One Dollar ($1.00) of tax for
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7 each One Thousand Dollars ($1,000.00) of taxable value;
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8 24. 25. "Multiple regression analysis" means a statistical
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9 technique for estimating unknown data on the basis of known and
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10 available data;
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11 25. 26. "Parcel" means a contiguous area of land described in a
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12 single description by a deed or other instrument or as one of a
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13 number of lots on a plat or plan, separately owned and capable of
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14 being separately conveyed;
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15 26. 27. "Sales comparison approach" means the collection,
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16 verification, and screening of sales data, stratification of sales
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17 information for purposes of comparison and use of such information
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18 to establish the fair cash value of taxable property;
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19 27. 28. "State Board of Equalization" means the Board
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20 responsible for valuation of railroad, airline and public service
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21 corporation property and the adjustment and equalization of all
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22 property values both centrally and locally assessed;
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23 28. 29. "Taxable value" means the percentage of the fair cash
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24 value of personal property or the taxable fair cash value of real
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1 property, less applicable exemptions, upon which an ad valorem tax
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2 rate is levied pursuant to the provisions of Section 8 and Section
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3 8B of Article X of the Oklahoma Constitution;
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4 29. 30. "Taxable fair cash value" means the fair cash value of
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5 locally assessed real property as capped pursuant to Section 8B of
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6 Article X of the Oklahoma Constitution;
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7 30. 31. "Use category" means a subcategory of real property,
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8 that is either agricultural use, residential use or
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9 commercial/industrial use but does not and shall not constitute a
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10 class of subjects within the meaning of the Oklahoma Constitution
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11 for purposes of ad valorem taxation;
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12 31. 32. "Use value" means the basis for establishing fair cash
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13 value of real property pursuant to the requirement of Section 8 of
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14 Article X of the Oklahoma Constitution; and
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15 32. 33. "Visual inspection program" means the program required
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16 in order to gather data about real property from physical
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17 examination of the property and improvements in order to establish
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18 the fair cash values of properties so inspected at least once each
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19 four (4) years and the fair cash values of similar properties on an
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20 annual basis.
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21 SECTION 2. AMENDATORY 68 O.S. 2021, Section 2803, is
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22 amended to read as follows:
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23 Section 2803. A. The Legislature, pursuant to authority of
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24 Article X, Section 22 of Article X of the Oklahoma Constitution,
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Req. No. 3224 Page 7
1 hereby classifies the following types of property for purposes of ad
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2 valorem taxation:
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3 1. Real property;
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4 2. Personal property, except as provided in paragraph
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5 paragraphs 3 and 6 of this subsection;
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6 3. Personal property which is household goods of the head of
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7 families and livestock employed in support of the family in those
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8 counties which have exempted such property pursuant to subsection
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9 (b) B of Section 6 of Article X of the Oklahoma Constitution;
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10 4. Public service corporation property; and
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11 5. Railroad and air carrier property; and
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12 6. Business assets.
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13 B. Valuation of each class of subjects shall be made by a
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14 method appropriate for each class or any subclass thereof, as
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15 established by the Ad Valorem Division of the Oklahoma Tax
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16 Commission.
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17 C. Classification as provided by this section shall require
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18 uniform treatment of each item within a class or any subclass as
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19 provided in Article X, Section 5 of Article X of the Oklahoma
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20 Constitution.
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21 SECTION 3. This act shall become effective January 1, 2027.
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23 60-2-3224 QD 1/15/2026 11:20:24 AM
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Req. No. 3224 Page 8Every fact on this page links to its source, starting with the official bill record.